Latest Insights in Stock Market Investing
The Option Greeks Meet Portfolio Overwriting
click ↑ 4 Featured Portfolio overwriting is a form of covered call writing where share retention is an additional requirement for the strategy goals. The option Greeks are financial metrics that measure the risk and pricing sensitivity of our option contracts. This...
The PCP (put-call-put or “wheel”) Strategy with Solaris Energy
click ↑ 4 Featured Combining covered call writing and selling cash-secured puts into one multi-tiered option-selling strategy is known as the Put-Call-Put (PCP) or "Wheel" strategy. In this article, a 68-day series of such trades will be analyzed, showing how a 160%...
The Poor Man’s Covered Call (PMCC) Strategy: A Real-Life Example
click ↑ 4 Featured The Poor Man's Covered Call (PMCC) is a covered call writing-like strategy where deep in-the-money LEAPS options (1–2-year expirations) are purchased and short-term out-of-the-calls are sold against the long calls. It is a low-cost way to enter a...
BCI PODCAST 176: Rolling Out and Up to ITM and OTM Call Strikes
When we roll our covered call options forward, we can roll-out to an in-the-money, at-the-money or out-of-the-money strike. Real-life examples using QQQQ will be detailed for rolling-out and rolling-out-and-up. The "What Now" worksheet tab of the BCI Trade...
Rolling-Up 4 Cash-Secured Put Contracts: Debunking an Option Myth
click ↑ 4 Featured It is not true that the maximum profit we can generate with a cash-secured put trade is the original put premium. Blue Collar Investors have an arsenal of exit strategies that allow us, not only to mitigate losses, but also to enhance gains. In this...
Ask Alan #244: Why Buy Back an Option for a Loss?
Alan, Using your covered call video example, the ITM premium is $8.05, but that is made up of $7.30 of intrinsic value and $0.75 of time value. So, if we buy back the option when its price falls to $1.60 (20% BTC) that $1.60 consists of all time value or upside in...
Managing Multiple Put Trades with Multiple Expirations Using the Trade Management Calculator
click ↑ 4 Featured Calculating initial returns for our covered call writing & cash-secured put trades is intuitive and straightforward. For puts, we divide the premium by the difference between the put strike and the put premium: % initial put return = [(put...
BCI PODCAST 175: Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting
Portfolio overwriting is a covered call writing-like strategy where we seek to generate additional portfolio income by selling deep OTM call options, unlikely to expire in-the-money. This podcast will analyze a strategy using implied volatility and the BCI Expected...
Shorter-Dated Options Generate the Highest Annualized Returns
click ↑ 4 Featured When selling cash-secured puts (or covered calls), large dollar premiums are enticing. Is a $17.00 premium better than an $11.00 premium? How about is a $20.00 premium better than that $17.00 premium? Before you answer "yes, of course", don't forget...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
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Our Journey and Mission
The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
Our story began when our founder Dr. Alan Ellman, realized the lack of accessible resources for average investors. Determined to bridge this gap, we created a platform that offers comprehensive guides, expert tips, and real-world strategies. Today, The Blue Collar Investor is a trusted resource for thousands of readers seeking to enhance their financial literacy and achieve their investment goals.